Tuesday, February 07, 2006

It's like Netflix, only from Blockbuster

When Netflix started out, one of their biggest challenges was explaining to people how it works. They spent alot of marketing dollars on that, since it's kinda more complicated than going to a videostore to rent something. They relied on word of mouth, because a) it's free, and b) customers are better at explaining how it works to their friends and family.

Well, Rags thinks it will be their downfall. Now that Netflix has educated the public, Blockbuster Online doesn't have to spend any money explaining how it works to their customers. They can emphasize the in-store coupons, which is something Netflix can't compete with. All they have to say is "it's like Netflix, only from Blockbuster" and "you get four free rentals per month for $18." So Netflix spends all this money on marketing their product, and Blockbuster Online reaps the rewards.

Via the un TechBlog

8 comments:

  1. I still think Netflix has the advantage. If you have to explain that "It's like Netflix only from Blockbuster." that means Netflix is pretty deep into our culture and that everyone understands it. When I have an idea for a movie I want to see, I think to myself "I'll just netflix it." Like a verb. Look at the companies that became verbs: Google, Xerox, Kleenex, TiVo - they are all still at the top of their game. It's going to save Blockbuster some marketing bucks, but that's not going to change much.

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  2. I'm not sure if its necessarily going to hurt Netflix now. I don't think are spending as much on "explaining" how it works now as when they first started. The fact that Netflix has become a household name is what Blockbuster now has to overcome.

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  3. I know people who refuse to go to Blockbuster stores and one of the appeals of netflix was that it wasn't blockbuster. Sure BB is piggybacking off netflix somewhat but they were not the pioneers and I think consumers often have a more trustworthy perception of the "first" of something. I am so glad I haven;t stepped into a video store in almost 4 years that even the occasional problems i have with the red envelope people is worth it.

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  4. I was one of those people that hated going into a blockbuster store and when I heard about netflix I immediately signed up. But then, when I heard about FREE COUPONS suddenly, going into the store to get something for free was not so bad after all and I switched back to blockbuster. Now I get the movies I want delivered by BB online and I go into the BB store and let the kids pick out whatever they wwant from "free" Somehow, its not so bad going to the actual store and dealing with it when you are just using the free coupon for the kid's videos. The real problme for both netflix and blockbuster is the continuing lack of ggod movies.

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  5. Becky, Thanks for starting a discussion based on my post. I enjoyed the comments on your post and on my post. You have a very good blog going on here, concentrating on one topic and providing value to your readers.

    Read more about my ideas in my Blog

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  6. Blockbuster is better than Netflix. I used to be a Netflix customer when they first came out, until they decided to screw over their customer base by raising their prices to off-set "increased costs of doing business." Blockbuster only charges $14.99 a month for three rentals at a time, plus you get two coupons for two free instore rentals every month. Not to mention other discount coupons for previously viewed movies and other instore stuff. Blockbuster might be riding the coattails of Netflix but they are reaping more benefits for cross-selling in their stores with the free coupons. This is something Netflix will never be able to accomplish unless they buy out Hollywood Video or some other large chain. Blcokbuster is to well established in the store front game. Plus now that they have their "no late fees" deal going on in select stores, there is no reason not to use Blockbuster. And don't give me that bulls#$t about not supporting a large conglomerate, they're all the same.

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  7. What does everyone, here, think of Netflix now...are you being THROTTLED?

    Please let me know if Blockbuster is just as bad...throttling!

    Many thanks...a sad Netflix customer...or a New Blockbuster customer, maybe!

    ???

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  8. See Yahoo news...Popular section for the update on Netflix THROTTLING.

    <: -(

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